UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549


FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number:     811-05542          

          BlackRock Income Trust, Inc.          
(Exact name of registrant as specified in charter)

100 Bellevue Parkway, Wilmington, DE 
19809 
(Address of principal executive offices) 
(Zip code) 


Robert S. Kapito, President
BlackRock Income Trust, Inc.

40 East 52nd Street, New York, NY 10022
(Name and address of agent for service)

 

Registrant's telephone number, including area code:     888-825-2257          

Date of fiscal year end:     October 31, 2006     
Date of reporting period:     July 31, 2006     

Item 1. Schedule of Investments.

The Registrant’s unaudited schedule of investments as of the close of the reporting period pursuant to Rule 30b1-5 under the Investment Company Act of 1940 is as follows:

PORTFOLIO OF INVESTMENTS (unaudited)
JULY 31, 2006

BlackRock Income Trust Inc. (BKT)

  Principal            
      Amount            
  Rating1   (000)   Description       Value  
          LONG-TERM INVESTMENTS—116.9%        
          Mortgage Pass-Through Securities—27.4%        
          Federal Home Loan Mortgage Corp.,        
      $  996 2          4.149%, 1/01/35       $      984,567  
      1,042 2     4.96%, 10/01/34       1,012,412  
      10,092       5.50%, 10/01/16-5/01/17       10,007,450  
      30 2     6.01%, 11/01/17       29,902  
      72       6.50%, 5/01/29-5/01/30       73,786  
      5       7.50%, 2/01/23       4,727  
      48       8.00%, 11/01/15       48,217  
      4       8.50%, 10/01/06-3/01/08       3,458  
      167       9.00%, 9/01/20       179,167  
          Federal National Mortgage Assoc.,        
      24,763       5.00%, 6/01/33-7/01/35       23,521,937  
      35,037       5.50%, 12/01/13-8/01/34       34,452,793  
      9,848 3     5.50%, 9/01/17       9,769,651  
      3,899       6.00%, 11/01/31-10/01/32       3,888,948  
      2,870       6.50%, 2/01/26-5/01/31       2,915,655  
      4,820       7.00%, 6/01/26-1/01/32       4,953,157  
      4       7.50%, 2/01/22-9/01/23       4,241  
      167       8.00%, 5/01/08-5/01/22       169,957  
      4       9.50%, 1/01/19-9/01/19       4,578  
      3,500       TBA, 6.00%, 8/14/36       3,477,033  
      15,200       TBA, 6.50%, 8/14/36       15,375,742  
          Government National Mortgage Assoc.,        
      70       7.00%, 10/15/17       72,111  
      473       7.50%, 8/15/21-12/15/23       490,161  
      245       8.00%, 10/15/22-2/15/29       261,276  
      32       9.00%, 6/15/18-9/15/21       35,140  
          Total Mortgage Pass-Through Securities       111,736,066  
          Federal Housing Administration Securities—2.1%        
      408   GMAC Colonial, 7.40%, 12/01/22       406,482  
          GMAC Projects,        
      300       Ser. 51, 7.43%, 2/01/23       298,904  
      681       Ser. 56, 7.43%, 11/01/22       678,915  
      52   Merrill Projects, Ser. 54, 7.43%, 5/15/23       51,526  
      812   Reilly Project, Ser. 41, 8.28%, 3/01/20       804,516  
          USGI Projects,        
      111       Ser. 87, 7.43%, 12/01/22       110,506  
      344       Ser. 99,7.43%, 10/01/23       343,080  
      5,722       Ser. 6094, 7.43%, 6/01/21       5,707,934  
          Total Federal Housing Administration Securities       8,401,863  
          Inverse Floating Rate Mortgage Securities—2.5%        
          Federal Home Loan Mortgage Corp.,        
      41 2     Ser. 1160, Class F, 17.319%, 10/15/21       40,879  
      289 2,3     Ser. 1616, Class SB, 8.50%, 11/15/08       287,516  
      916 2     Ser. 1688, Class S, 8.709%, 12/15/13       914,818  
          Federal National Mortgage Assoc.,        
      46 2     Ser. 7, Class S, 534.783%, 3/25/21       5,454  
      68 2     Ser. 17, Class S, 525.547%, 6/25/21       7,584  
      86 2     Ser. 38, Class SA, 10.186%, 4/25/21       90,147  
      22 2     Ser. 46, Class S, 1280.969%, 5/25/21       3,721  
      27 2     Ser. 49, Class S, 472.55%, 12/25/21       2,853  
      391 2     Ser. 72, Class S, 8.75%, 5/25/08       388,710  
      7,177 2     Ser. 73, Class DS, 3.549%, 8/25/35       5,715,778  
      161 2     Ser. 87, Class S, 12.356%, 8/25/21       184,650  
      161 2     Ser. 93, Class S, 8.50%, 5/25/08       162,790  
      55 2     Ser. 170, Class SC, 9.00%, 9/25/08       55,548  
      767 2     Ser. 196, Class SC, 7.354%, 10/25/08       759,762  
      308 2     Ser. 214, Class SH, 4.194%, 12/25/08       294,812  
      1,141 2     Ser. 247, Class SN, 10.00%, 12/25/23       1,141,509
   

1

BlackRock Income Trust Inc. (BKT) (continued)

      Principal            
        Amount            
    Rating1   (000)   Description       Value  
          Inverse Floating Rate Mortgage Securities—(cont’d)        
    AAA   $  185 2      Kidder Peabody Acceptance Corp., Ser. 1, Class A6, 6.621%, 8/25/23       $  179,363  
            Total Inverse Floating Rate Mortgage Securities       10,235,894  
            Interest Only Asset-Backed Securities—0.7%        
    AAA   2,589 2,4 Morgan Stanley Capital Trust I, Ser. HF1, Class X, 1.752%, 6/15/17       15,350  
            Sterling Coofs Trust,        
    NR   30,678       Ser. 1, 2.362%, 4/15/29       1,533,918  
    NR   23,577       Ser. 2, 2.081%, 3/30/30       1,473,590  
            Total Interest Only Asset-Backed Securities       3,022,858  
            Interest Only Mortgage-Backed Securities—11.2%        
    AAA   2,553   ABN Amro Mortgage Corp., Ser. 4, Class A2, 5.50%, 3/25/33       41,890  
    Aaa   81,369 2 Commercial Mortgage Acceptance Corp., Ser. ML1, 0.851%, 11/15/17       1,321,857  
    AAA   19,482 2,4 Credit Suisse First Boston Mortgage Securities Corp., Ser. C1, Class AX, 1.532%, 6/20/29       557,058  
    AAA   177,030 2 CWALT, Inc., Ser. 79CB, Class A2, Zero Coupon, 1/25/36       663,862  
            Federal Home Loan Mortgage Corp.,        
        5,370 2     Ser. 60, Class HS, 0.563%, 4/25/24       11,332  
        7       Ser. 176, Class M, 1010.00%, 7/15/21       89  
        33       Ser. 200, Class R, 98500.338%, 12/15/22       367  
        2,157       Ser. 204, 6.00%, 5/01/29       527,833  
        19 2     Ser. 1043, Class H, 20.813%, 2/15/21       20,299  
        2 2     Ser. 1054, Class I, 413.56%, 3/15/21       336  
        18       Ser. 1056, Class KD, 1084.50%, 3/15/21       2,211  
        60 2     Ser. 1148, Class E, 563.074%, 10/15/21       958  
        15       Ser. 1179, Class O, 10.09%, 11/15/21       255  
        2       Ser. 1221, Class H, 1006.50%, 3/15/07       44  
        346       Ser. 1706, Class IA, 7.00%, 10/15/23       16,339  
        113       Ser. 1720, Class PK, 7.50%, 1/15/24       6,795  
        4,364       Ser. 1914, Class PC, 0.75%, 12/15/11       49,870  
        80 2     Ser. 2002, Class HJ, 3.00%, 10/15/08       92  
        1,017 2     Ser. 2296, Class SA, 2.381%, 3/15/16       40,887  
        579 2     Ser. 2444, Class ST, 2.601%, 9/15/29       26,239  
        375       Ser. 2513, Class BI, 5.50%, 12/15/15       10,416  
        1,752       Ser. 2542, Class MX, 5.50%, 5/15/22       282,132  
        109       Ser. 2543, Class IM, 5.00%, 9/15/12       130  
        3,412       Ser. 2545, Class NI, 5.50%, 3/15/22       454,006  
        4,032 2     Ser. 2559, 0.923%, 8/15/30       16,382  
        5,674       Ser. 2561, Class EW, 5.00%, 9/15/16       558,395  
        12,625       Ser. 2611, Class QI, 5.50%, 9/15/32       2,296,921  
        7,462       Ser. 2633, Class PI, 4.50%, 3/15/12       196,264  
        4,136       Ser. 2653, Class MI, 5.00%, 4/15/26       528,891  
        6,963       Ser. 2658, Class PI, 4.50%, 6/15/13       376,231  
        5,662       Ser. 2672, Class TQ, 5.00%, 3/15/23       293,149  
        4,047       Ser. 2676, Class JI, 5.50%, 8/15/13       80,804  
        3,633       Ser. 2687, Class IL, 5.00%, 9/15/18       503,275  
        10,509       Ser. 2687, Class IQ, 5.50%, 9/15/22       357,618  
        6,533       Ser. 2693, Class IB, 4.50%, 6/15/13       375,544  
        3,285       Ser. 2694, Class LI, 4.50%, 7/15/19       368,153  
        6,040       Ser. 2773, Class OX, 5.00%, 2/15/18       784,427  
        13,747 2     Ser. 2779, Class YS, 1.781%, 1/15/33       629,946  
        19,426 2     Ser. 2780, Class SM, 0.631%, 4/15/34       255,129  
        8,077       Ser. 2786, Class PI, 4.50%, 10/15/10       147,453  
        6,727       Ser. 2825, Class NI, 5.50%, 3/15/30       1,720,892  
        39,659 2     Ser. 2990, Class WR, 1.26%, 6/15/35       1,542,544  
        110,599 2     Ser. 3122, Class IS, 1.331%, 3/15/36       5,218,878  
            Federal National Mortgage Assoc.,        
        264       Ser. 5, Class H, 9.00%, 1/25/22       45,904  
        15       Ser. 7, Class 2, 8.50%, 4/01/17       3,229  
        5,139       Ser. 9, Class BI, 5.50%, 10/25/22       740,215  
        127 2     Ser. 10, Class S, 517.50%, 5/25/21       13,932  
        69       Ser. 12, Class C, 10.169%, 2/25/22       13,472  
        108 2     Ser. 12, Class S, 546.303%, 5/25/21       11,640  
        7,246       Ser. 13, Class IG, 5.00%, 10/25/22       395,451  
        7,225       Ser. 16, Class PI, 5.00%, 11/25/12       221,287  
        88       Ser. 33, Class PV, 1078.42%, 10/25/21       25,044  
 

2

BlackRock Income Trust Inc. (BKT) (continued)

      Principal            
        Amount            
    Rating1   (000)   Description       Value  
          Interest Only Mortgage-Backed Securities—(cont’d)        
        $ 1,954 2          Ser. 33, Class SG, 2.694%, 3/25/09       $   48,945  
        56,220 2     Ser. 36, Class SP, 1.315%, 5/25/36       3,255,137  
        6       Ser. 38, Class N, 1008.50%, 4/25/21       672  
        2,117       Ser. 43, Class LC, 6.00%, 3/25/34       387,694  
        68       Ser. 50, Class G, 1158.628%, 12/25/21       9,833  
        886 2     Ser. 50, Class SI, 1.20%, 4/25/23       28,608  
        7,372       Ser. 51, Class IE, 5.50%, 4/25/26       359,867  
        6,044       Ser. 55, Class GI, 5.00%, 7/25/19       727,257  
        4,826 2     Ser. 59, Class S, 5.21%, 10/25/22       607,718  
        753 2     Ser. 60, Class SB, 1.60%, 10/25/22       24,639  
        592       Ser. 62, Class IC, 5.50%, 7/25/15       22,518  
        6,407       Ser. 66, Class CI, 5.00%, 7/25/33       1,199,245  
        2,822 2     Ser. 68, Class SC, 2.694%, 1/25/24       116,455  
        5,207       Ser. 71, Class EI, 5.50%, 8/25/33       1,023,454  
        17,438 2     Ser. 73, Class ST, 0.745%, 8/25/35       298,923  
        526       Ser. 82, Class IR, 5.00%, 9/25/12       3,186  
        10,961       Ser. 88, Class TI, 4.50%, 11/25/13       528,703  
        27       Ser. 89, Class 2, 8.00%, 6/01/18       5,769  
        38,104 2     Ser. 90, Class JH, 1.315%, 11/25/34       1,329,979  
        15,972       Ser. 90, Class M, 6.00%, 1/25/28       2,817,997  
        9       Ser. 94, Class 2, 9.50%, 8/01/21       2,167  
        34       Ser. 99, Class L, 930.00%, 8/25/21       5,641  
        728       Ser. 122, Class IA, 4.00%, 9/25/09       3,483  
        3,741       Ser. 122, Class IC, 5.00%, 9/25/18       557,227  
        5       Ser. 123, Class M, 1009.50%, 10/25/20       967  
        38 2     Ser. 136, Class S, 14.684%, 11/25/20       44,477  
        58       Ser. 139, Class PT, 648.35%, 10/25/21       7,360  
        7 2     Ser. 141, Class SA, 13.375%, 8/25/07       371  
        2,751 2     Ser. 199, Class SB, 2.094%, 10/25/23       116,988  
        768       Ser. W4, 6.50%, 12/25/28       173,942  
    AAA   113   First Boston Mortgage Securities Corp., Ser. C, Class I, 10.965%, 4/25/17       18,664  
            First Horizon Alternative Mortgage Securities,        
    AAA   90,166 2     Ser. FA7, Class 1A7, Zero Coupon, 10/25/35       338,123  
    AAA   226,688 2     Ser. FA9, Class A2, Zero Coupon, 12/25/35       708,399  
    AAA   20,694 2 General Motors Acceptance Corp., Commercial Mortgage Securities, Inc., Ser. C1, Class X, 1.501%, 7/15/27       564,245  
    AAA   10,528 2,4 Goldman Sachs Mortgage Securities Corp., Ser. 5, 1.005%, 2/19/25       220,487  
            Government National Mortgage Assoc.,        
        2,264       Ser. 39, Class ID, 5.00%, 5/20/33       511,584  
        2,711       Ser. 58, Class IT, 5.50%, 7/20/33       325,465  
        9,210       Ser. 75, Class IJ, 5.50%, 7/20/25       385,404  
        21,723 2     Ser. 89, Classl SA, 0.531%, 10/16/33       266,783  
    Aaa   92   Kidder Peabody Acceptance Corp., Ser. B, Class A2, 9.50%, 4/22/18       19,342  
    AAA   33,233   MASTR Adjustable Rate Mortgages Trust, Ser. 3, Class 3AX, 0.977%, 4/25/34       815,107  
    AAA   1,827   MASTR Alternative Loan Trust, Ser. 9, Class 15X2, 6.00%, 1/25/19       233,638  
    AAA   86 2 MLCC Mortgage Investors Inc., Ser. A, Class XA, 0.833%, 3/25/28       3,183  
    AAA   2,186   Morgan Stanley Capital Trust I, Ser. 3, Class 1AX, 5.00%, 5/25/19       253,813  
    AAA   194,500 2 Residential Accredit Loans, Inc., Ser. QS16, Class A2, Zero Coupon, 11/25/35       303,906  
    AAA   125,450 2 Sequoia Mortgage Trust, Ser. 2, Class XA, 0.758%, 3/20/35       784,060  
    NR   11,003 5 Small Business Administration, Ser. 1, 1.381%, 4/01/15       1  
            Structured Adjustable Rate Mortgage Loan Trust,        
    AAA   21,872 2     Ser. 2, Class 4AX, 5.50%, 3/25/36       3,390,201  
    AAA   5,819       Ser. 20, Class 3AX, 5.50%, 10/25/35       951,455  
    NA   107,817 2 Vendee Mortgage Trust, Ser. 2, Class 1, 0.053%, 5/15/29       249,358  
            Total Interest Only Mortgage-Backed Securities       45,808,807  
            Principal Only Mortgage-Backed Securities—5.9%        
            Countrywide Home Loans, Inc.,        
    AAA   6,288 6     Ser. 26, 4.944%, 8/25/33       4,648,123  
    AAA   1,171 6     Ser. J4, 5.142%, 6/25/33       892,627  
    AAA   1,689 6     Ser. J5, 4.911%, 7/25/33       1,290,570  
    AAA   1,301 6     Ser. J8, 4.787%, 9/25/23       983,682  
            Drexel Burnham Lambert, Inc.,        
    AAA     36 6     Ser. K, Class 1, 11.50%, 9/23/17       30,503  
    AAA   421 6     Ser. V, Class 1, 11.50%, 9/01/18       366,847  
 

3

BlackRock Income Trust Inc. (BKT) (continued)

      Principal            
        Amount            
    Rating1   (000)   Description       Value  
          Principal Only Mortgage-Backed Securities—(cont’d)        
            Federal Home Loan Mortgage Corp.,        
        $  285 6          Ser. 8, Class A10, 6.737%, 11/15/28       $  207,174  
        197 6     Ser. 1418, Class M, 7.50%, 11/15/22       182,333  
        577 6     Ser. 1571, Class G, 7.50%, 8/15/23       522,584  
        2,531 6     Ser. 1691, Class B, 7.50%, 3/15/24       2,077,922  
        250 6     Ser. 1739, Class B, 7.50%, 2/15/24       223,925  
            Federal National Mortgage Assoc.,        
        365 6     Ser. 2, Class KB, 8.00%, 1/25/23       289,383  
        49 6     Ser. 7, Class J, 10.00%, 2/25/21       39,639  
        1,110 6     Ser. 13, Class PR, 6.50%, 3/25/32       840,565  
        154 6     Ser. 51, Class E, 8.00%, 2/25/23       120,914  
        31 6     Ser. 70, Class A, 7.00%, 5/25/23       27,462  
        70 6     Ser. 167, Class D, 8.50%, 10/25/17       65,858  
        56 6     Ser. 203, Class 1, 8.00%, 2/01/23       46,382  
        36 6     Ser. 228, Class 1, 7.00%, 5/01/23       28,858  
        2,191 6     Ser. 249, Class B, 7.50%, 11/25/23       1,850,451  
        303 6     Ser. 273, Class 1, 7.00%, 7/01/26       237,529  
        5,477 6     Ser. 328, Class 1, 6.00%, 11/01/32       4,088,998  
        4,235 6     Ser. 338, Class 1, 5.50%, 6/01/33       3,057,086  
        397 6     Ser. W4, 5.985%, 2/25/29       277,944  
    AAA   314 6 MASTR Asset Securitization Trust, Ser. 3, Class 4A15, 5.634%, 3/25/34       208,594  
    AAA   983 6 Residential Asset Securitization Trust, Ser. A15, Class 1A8, 5.713%, 2/25/36       563,659  
    AAA   19 5,6 Structured Mortgage Asset Residential Trust, Ser. 3C, Class CX, 7.031%, 4/25/24       16,873  
    AAA   1,064 6 Washington Mutual, Ser. 9, Class CP, 5.112%, 11/25/35       750,087  
            Total Principal Only Mortgage-Backed Securities       23,936,572  
            Collateralized Mortgage Obligation Residual Securities—0.0%        
            Collateralized Mortgage Obligation Trust,        
    AAA   4       Ser. 40, Class R, 580.50%, 4/01/18       478  
    AAA   78       Ser. 42, Class R, 6000.00%, 10/01/14       8,520  
            Federal Home Loan Mortgage Corp.,        
        28       Ser. 19, Class R, 9427.368%, 3/15/20       2,143  
        —       Ser. 75, Class R, 9.50%, 1/15/21       6  
        —       Ser. 75, Class RS, 16.385%, 1/15/21       6  
        —       Ser. 173, Class R, 9.00%, 11/15/21       27  
        —       Ser. 173, Class RS, 9.131%, 11/15/21       28  
    NR   13   Painewebber CMO Trust, Ser. 88 M, Class 6, 13.80%, 9/01/18       —  
            Total Collateralized Mortgage Obligation Residual Securities       11,208  
            Collateralized Mortgage Obligation Securities—42.4%        
    AAA   7,527   CWALT, Inc., Ser. 28CB, Class 1A5, 5.50%, 8/25/35       7,483,900  
            Federal Home Loan Mortgage Corp.,        
        5,022 2     Ser. 11, Class A9, 2.392%, 1/25/28       3,829,431  
        284       Ser. 19, Class F, 8.50%, 3/15/20       283,933  
        937       Ser. 40, Class K, 6.50%, 8/17/24       954,671  
        1 2     Ser. 192, Class U, 1009.033%, 2/15/22       11  
        20       Ser. 1057, Class J, 1008.001%, 3/15/21       3,914  
        3,000       Ser. 1598, Class J, 6.50%, 10/15/08       3,012,477  
        592       Ser. 1961, Class H, 6.50%, 5/15/12       597,681  
        8,550       Ser. 2218, Class Z, 8.50%, 3/15/30       9,357,169  
        15,636       Ser. 2461, Class Z, 6.50%, 6/15/32       15,919,605  
        10,200       Ser. 2542, Class UC, 6.00%, 12/15/22       10,215,093  
        2,475       Ser. 2562, Class PG, 5.00%, 1/15/18       2,372,211  
        928       Ser. 2564, Class NC, 5.00%, 2/15/33       819,226  
        2,050       Ser. 2750, Class TC, 5.25%, 2/15/34       1,965,507  
        12,023       Ser. 2758, Class KV, 5.50%, 5/15/23       11,598,070  
        1,587       Ser. 2765, Class UA, 4.00%, 3/15/11       1,509,852  
        3,429       Ser. 2806, Class VC, 6.00%, 12/15/19       3,444,326  
        2,243       Ser. 2927, Class BZ, 5.50%, 2/15/35       2,039,606  
            Federal National Mortgage Assoc.,        
        1,314 2     Ser. 2, Class KP, 2.459%, 2/25/35       1,301,620  
        699       Ser. 17, Class JA, 4.00%, 4/25/34       697,089  
        6,673       Ser. 28, Class PB, 6.00%, 8/25/28       6,669,403  
        2,536       Ser. 29, Class HC, 7.50%, 7/25/30       2,678,350  
 

4

BlackRock Income Trust Inc. (BKT) (continued)

      Principal        
        Amount        
    Rating1   (000)   Description   Value  
          Collateralized Mortgage Obligation Securities—(cont’d)      
        $ 2,169       Ser. 31, Class ZG, 7.50%, 5/25/34   $ 2,379,235  
        8,018       Ser. 32, Class VT, 6.00%, 9/25/15   8,045,308  
        85 2          Ser. 38, Class F, 8.325%, 4/25/21   88,699  
        8,827       Ser. 38, Class Z, 5.00%, 5/25/36   8,672,486  
        3,193       Ser. 68, Class PC, 5.50%, 7/25/35   3,161,951  
        12,264       Ser. 135, Class PB, 6.00%, 1/25/34   12,219,501  
        2,893   Freddie Mac Structured Pass, Ser. 2996, Class MK, 5.50%, 6/15/35   2,862,633  
            Government National Mortgage Assoc.,    
        1,325       Ser. 5, Class Z, 7.00%, 5/16/26   1,368,688  
        2,429       Ser. 33, Class PB, 6.50%, 7/20/31   2,465,221  
        4,872       Ser. 89. Class PE, 6.00%, 10/20/34   4,924,638  
            GSR Mortgage Loan Trust,    
    AAA   4,889 2     Ser. 10, Class 2A1, 4.476%, 10/25/33   4,706,491  
    AAA   4,768 2     Ser. 13, Class 1A1, 4.502%, 10/25/33   4,599,567  
    AAA   2,010   MASTR Alternative Loan Trust, Ser. 7, Class 4A3, 8.00%, 11/25/18   2,113,498  
    AAA   8,568   MASTR Asset Securitization Trust, Ser. 12, Class 3A5, 5.25%, 10/25/14   8,310,125  
    AAA   7,027 2 Residential Asset Securitization Trust, Ser. A8, Class A2, 5.735%, 10/25/18   7,018,933  
    AAA   11,536   Residential Funding Securities Corp., Ser. RM2, Class AI5, 8.50%, 5/25/33   12,288,482  
    AAA   6,550 2 Structured Adjustable Rate Mortgage Loan Trust, Ser. 18, Class 7AX, 5.50%, 9/25/35   1,088,981  
    AAA   66 2,4,7      Summit Mortgage Trust, Ser. 1, Class B1, 6.218%, 12/28/12   65,922  
            Total Collateralized Mortgage Obligation Securities   173,133,504  
            U.S. Government and Agency Securities—23.9%      
            Overseas Private Investment Corp.,    
        306       4.09%, 5/29/12   273,873  
        853 2     4.30%, 5/29/12   785,950  
        638       4.64%, 5/29/12   595,591  
        360       4.68%, 5/29/12   326,091  
        2,724       4.87%, 5/29/12   2,567,759  
        3,369 2     5.40%, 5/29/12   3,339,453  
        13,000   Resolution Funding Corp., Ser. B, Zero Coupon, 4/15/30   3,816,012  
            Small Business Administration,    
        886       Ser. 20C-1, 7.15%, 3/01/17   916,455  
        899       Ser. 20E-1, 7.60%, 5/01/16   934,342  
        1,128       Ser. 20F-1, 7.55%, 6/01/16   1,172,878  
        758       Ser. 20G-1, 7.70%, 7/01/16   790,459  
        1,255       Ser. 20H-1, 7.25%, 8/01/16   1,296,878  
        1,940       Ser. 20K-1, 6.95%, 11/01/16   1,997,168  
            U.S. Treasury Notes,    
        21,000 8     3.75%, 3/31/07   20,806,406  
        19,400 8     4.00%, 8/31/07   19,172,656  
        100,000 8 U.S. Treasury Strip, Zero Coupon, 11/15/24   38,829,200  
            Total U.S. Government and Agency Securities   97,621,171  
            Corporate Bond—0.8%      
    AA+   3,456 5 Structured Asset Receivable Trust, 1.649%, 1/21/10   3,455,660  
            Total Long-Term Investments (cost $508,570,656)   477,363,603  
            SHORT-TERM INVESTMENT—0.8%      
            U.S. Government and Agency Discount Note—0.8%      
        3,200 9 Federal Home Loan Bank Disc. Notes, 5.135%, 8/07/06 (cost $3,197,264)   3,197,264  
     
Notional
       
     
Amount
       
        (000)        
            OUTSTANDING OPTIONS PURCHASED—0.3%    
            Interest Rate Swaps,    
        5,700       Trust pays 3-month LIBOR, Trust receives 5.26%, expires 3/02/16     184,110  
        5,700       Trust pays 3-month LIBOR, Trust receives 5.50%, expires 12/11/15   293,550  
        5,700       Trust pays 5.26%, Trust receives 3-month LIBOR, expires 3/02/16   330,600  
        5,700       Trust pays 5.50%, Trust receives 3-month LIBOR, expires 12/11/15   404,700  
            Total Outstanding Options Purchased (cost $1,270,530)   1,212,960  
            Total investments before borrowed bonds, investments sold short,    
                TBA sale commitments and outstanding options written (cost $513,038,45010)   481,773,827  
 

5

BlackRock Income Trust Inc. (BKT) (continued)

                    Prinicpal            
        Amount            
        (000)   Description       Value  
          BORROWED BONDS—14.1%        
            U.S. Treasury Bonds,        
        $13,577 11          4.90%, 8/02/06       $ 13,576,500  
        17,935 11     5.10%, 8/02/06       17,935,313  
            U.S. Treasury Notes,        
        11,835 11     4.98%, 8/02/06       11,835,000  
        14,081 11     5.00%, 8/02/06       14,080,500  
            Total Borrowed Bonds (cost $57,427,313)       57,427,313  
            INVESTMENTS SOLD SHORT—(13.9)%        
            U.S. Treasury Bonds,        
        (12,930)       5.375%, 2/15/31       (13,378,509)  
        (15,750)       6.25%, 8/15/23       (17,642,461)  
            U.S. Treasury Notes,        
        (14,900)       4.00%, 2/15/15       (13,915,204)  
        (12,000)       4.125%, 8/15/10       (11,658,750)  
            Total Investments Sold Short (proceeds $59,142,549)       (56,594,924)  
            TBA SALE COMMITMENTS—(4.0)%    
            Federal National Mortgage Assoc.,        
        (9,500)       TBA, 5.00%, 8/14/36       (8,989,375)  
        (7,500)       TBA, 5.50%, 8/14/36       (7,282,035)  
            Total TBA Sale Commitments (proceeds $16,091,914)       (16,271,410)  
      Contracts/            
        Notional            
        Amount            
        (000)            
            OUTSTANDING OPTIONS WRITTEN—(0.6)%        
            Interest Rate Swaps,    
        (14,100)       Trust pays 3-month LIBOR, Trust receives 4.725%, expires 6/13/07       (915,372)  
        (5,700)       Trust pays 3-month LIBOR, Trust receives 5.135%, expires 4/21/08       (286,824)  
        (12,400)       Trust pays 3-month LIBOR, Trust receives 5.67%, expires 1/04/10       (518,415)  
        (14,100)       Trust pays 4.725%, Trust receives 3-month LIBOR, expires 6/13/07       (49,773)  
        (5,700)       Trust pays 5.135%, Trust receives 3-month LIBOR, expires 4/21/08       (94,876)  
        (12,400)       Trust pays 5.67%, Trust receives 3-month LIBOR, expires 1/04/10       (481,833)  
        (70)   U.S. Treasury Notes Future, expiring 8/25/06       (15,313)  
            Total Outstanding Options Written (premium received $2,908,212)       (2,362,406)  
            Total investments net of borrowed bonds, investments sold short,        
                TBA sale commitments and outstanding options written—113.6%       $463,972,400  
            Liabilities in excess of other assets (including $45,448,000 in reverse repurchase agreements)—(13.6)%       (55,447,786)  
            Net Assets—100%    
$408,524,614
  

1   Using the highest of S&P’s, Moody’s or Fitch’s rating.  
2   Variable rate security. Rate shown is interest rate as of July 31, 2006.  
3   Security, or a portion thereof, pledged as collateral with a value of $9,860,050 on 1,284 short Eurodollar futures contracts expiring September 2006 to March 2009, 738 short U.S. Treasury Bond futures contracts expiring September 2006 and 428 short U.S. Treasury Note futures contracts expiring September 2006. The notional value of such contracts on July 31, 2006 was $428,818,888, with an unrealized gain of $998,211.  
4   Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of July 31, 2006, the Trust held 0.2% of its net assets, with a current market value of $858,817, in securities restricted as to resale.  
5   Illiquid security. As of July 31, 2006, the Trust held 0.9% of its net assets, with a current market value of $3,472,534 in these securities.  
6   Rate shown is effective yield as of July 31, 2006 of the underlying collateral.  
7   Security is fair valued.  
8   Entire or partial principal amount pledged as collateral for reverse repurchase agreements.  
9   Rate shown is the yield to maturity as of the date of purchase.  
10   Cost for Federal income tax purposes is $517,049,787. The net unrealized depreciation on a tax basis is $35,275,960, consisting of $7,270,776 gross unrealized appreciation and $42,546,736 gross unrealized depreciation.  
11   The interest rate and maturity date shown represent the terms of the borrowed transaction, not the security borrowed. 

 

KEY TO ABBREVIATIONS

TBA     —     To Be Announced

6

 

Item 2. Controls and Procedures.

(a) The Registrant's principal executive and principal financial officers have evaluated the Registrant's disclosure controls and procedures within 90 days of this filing and have concluded, as of that date, that the Registrant’s disclosure controls and procedures were reasonably designed to ensure that information required to be disclosed by the Registrant in this Form N-Q was recorded, processed, summarized, and reported within the required time periods and that information to be disclosed by the Registrant in this Form N-Q was accumulated and communicated to the Registrant’s management, including its principal executive and principal financial officers, as appropriate, to allow timely decisions regarding required disclosure.

(b) There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a -3(d)) that occurred during the Registrant's last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.

Item 3. Exhibits.

Separate certifications of the Registrant’s Principal Executive and Financial Officers pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 are attached as EX-99.CERT.

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant)     BlackRock Income Trust, Inc.               

By:     /s/ Henry Gabbay                                                  
Name: Henry Gabbay
Title: Treasurer and Principal Financial Officer
Date: September 27, 2006

     Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By:     /s/ Robert S. Kapito                                             
Name: Robert S. Kapito
Title: President and Principal Executive Officer
Date: September 27, 2006

By:     /s/ Henry Gabbay                                                  
Name: Henry Gabbay
Title: Treasurer and Principal Financial Officer
Date: September 27, 2006